Balancing Public Market Benefits and Burdens for Smaller Companies Post-Sarbanes-Oxley
Ohio State University - Moritz College of Law; Bocconi University - BAFFI Center on International Markets, Money, and Regulation; Tufts University - The Fletcher School of Law and Diplomacy; Fundación Instituto de Empresa, S.L. - IE Business School
Willamette Law Review, Vol. 41, No. 3, Summer 2005
Accumulating evidence suggests that several recent regulations enacted by Congress and the SEC, including the Sarbanes-Oxley Act, have disproportionately burdened smaller public companies in a negative manner, such that many of these companies are exiting the public markets. This Article describes these regulations, reviews their effects, and proposes several options that the SEC might choose to address the imbalance of costs and benefits for small businesses. The simplest option would provide for a waiver or postponement of certain regulations imposed under the Sarbanes-Oxley Act More significant possible measures include the expansion of the SEC's small business regulatory regime under Regulation S-B, and the creation of a securities market for small-business issuers.
Number of Pages in PDF File: 45
Keywords: Sarbanes-Oxley, small business
JEL Classification: K22
Date posted: February 17, 2005